Insider Buying: Neusoft Education Technology Non-Executive Chairman of the Board Bought CN¥488k Of Shares

Even if it's not a huge purchase, we think it was good to see that Jiren Liu, the Non-Executive Chairman of the Board of Neusoft Education Technology Co. Limited (HKG:9616) recently shelled out HK$488k to buy stock, at HK$2.26 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Neusoft Education Technology

The Last 12 Months Of Insider Transactions At Neusoft Education Technology

In fact, the recent purchase by Jiren Liu was the biggest purchase of Neusoft Education Technology shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$2.31 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Jiren Liu was the only individual insider to buy shares in the last twelve months.

Jiren Liu bought 1.08m shares over the last 12 months at an average price of HK$2.60. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Neusoft Education Technology insiders own 25% of the company, worth about HK$378m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Neusoft Education Technology Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Neusoft Education Technology. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neusoft Education Technology. Case in point: We've spotted 2 warning signs for Neusoft Education Technology you should be aware of.

Of course Neusoft Education Technology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.